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PATRIZIA raises forecast for 2010

In the third quarter of 2010, PATRIZIA Immobilien AG (ISIN DE000PAT1AG3) continued the strong development it enjoyed in the first half of the year: Cumulative revenues for 2010 to date increased by 43.0 % year-on-year to EUR 221.2 million (previous year: EUR 154.7 million).

EBIT for the first nine months of 2010 amounted to EUR 44.7 million, up 19.4 % year-on-year (previous year: EUR 38.1 million). Operating earnings (EBT adjusted) improved by EUR 11 million up to EUR 8.2 million (previous year: EUR -2.8 million). This was primarily attributable to the positive business performance in the Residential Property Resale segment: sales figures increased to 245 units in the third quarter of 2010 (+13.4 %; third quarter of 2009: 216 units). With 605 units sold in the first three quarters, the segment has already achieved 92 % of the sales recorded in 2009 as a whole (657 units). Block sales exceeded the prior-year figure by 31 %, with a total of 380 units sold in the first nine months (2009: 289 units). All in all, 985 units were sold by way of residential property resale and block sale in the first three quarters of 2010, 4 % more than in the whole of 2009 (946 units).

The Management Board is taking this positive development as an opportunity to raise its forecast for 2010. It is now forecasting operating earnings (EBT adjusted) for fiscal 2010 of between EUR 12 million and EUR 13 million (previously EUR 10 million).

This increase is due to the notarized transactions that will be recognized in income in the fourth quarter. Three development projects will be handed over to their new owners by the end of the year. In addition, a further 281 units have been notarized as part of block sales, the sales proceeds from which will also be recognized in the fourth quarter. In the Residential Property Resale segment, sales figures in the region of those generated in both the first and second quarters of 2010 – i.e. around 180 units – should be achievable.

The complete interim report for the third quarter of 2010 can be found here.